BILL NUMBER: AB 1937	CHAPTERED  08/25/00

	CHAPTER   237
	FILED WITH SECRETARY OF STATE   AUGUST 25, 2000
	APPROVED BY GOVERNOR   AUGUST 24, 2000
	PASSED THE ASSEMBLY   AUGUST 10, 2000
	PASSED THE SENATE   JULY 6, 2000
	AMENDED IN SENATE   JUNE 21, 2000
	AMENDED IN ASSEMBLY   MAY 9, 2000

INTRODUCED BY   Assembly Member Correa
   (Principal coauthor: Senator Ortiz)
   (Coauthors:  Assembly Members Briggs, Firebaugh, Honda, Knox, and
Pescetti)

                        FEBRUARY 15, 2000

   An act to amend Section 21328 of, and to add Sections 31664.1,
31664.2, and 31681.55 to, the Government Code, relating to
retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1937, Correa.  Retirement:  benefits.
   Under the Public Employees' Retirement Law, retirement allowances
being paid on account of retired or deceased state and school members
were increased, effective January 1, 2000, by up to 6%, as
specified.
   This bill would authorize contracting agencies of the Public
Employees' Retirement System to likewise increase retirement
allowances being paid on account of their retired or deceased
members.
   Under the County Employees Retirement Law of 1937, service
retirement allowances for safety members are based on a 2% at age 50
formula and allowances for other members are based on other specified
formulae.
   This bill would authorize counties or districts, subject to
approval by the county board of supervisors, to (1) provide service
retirement allowances for safety members based on a 3% at age 50
formula or 3% at age 55 formula, and (2) increase allowances being
paid on account of retired or deceased members by up to 6%, as
specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 21328 of the Government Code is amended to
read:
   21328.  (a) In addition to the increase in allowance authorized
and granted pursuant to Section 21313, and notwithstanding the
limitation on that increase imposed by this article and subdivision
(b) of Section 21337, effective January 1, 2000, or the date this
section becomes applicable to the contracting agency, the monthly
allowance paid with respect to a state, local, or school member who
retired or died prior to January 1, 2000, or the date this section
becomes applicable to the contracting agency, other than an allowance
provided by Article 3 (commencing with Section 21570) of Chapter 14,
shall be increased by the percentage set forth opposite the year of
retirement or death in the following schedule:


    Period during which retirement
    or death occurred:                       Percentage:
    24 months ending Dec. 31, 1999               0.0%
    12 months ending Dec. 31, 1997               1.0%
    24 months ending Dec. 31, 1996               2.0%
    60 months ending Dec. 31, 1994               3.0%
    60 months ending Dec. 31, 1989               4.0%
    120 months ending Dec. 31, 1984              5.0%
    12 months ending Dec. 31, 1974
    or earlier                                   6.0%

   The percentage shall be applied to the allowance payable on
January 1, 2000, or the date this section becomes applicable to the
contracting agency, and the allowance as so increased shall be paid
for time on and after that date and until the first day of April
immediately following the date of application.  The base allowance
shall be the allowance as increased under this section.
Notwithstanding Section 21337 to the contrary, this increase shall
not be included in determining the initial monthly allowance upon
which a supplemental benefit is payable pursuant to Section 21337.
   (b) This section shall not apply to any contracting agency unless
and until the agency elects to be subject to its provisions by
amendment to its contract, made in the manner prescribed for approval
of contracts, or, in the case of contracts made after the effective
date of this section, by an express provision in the contract making
the contracting agency subject to the provisions of this section.
  SEC. 2.  Section 31664.1 is added to the Government Code, to read:
   31664.1.  (a) This section may be made applicable in any county on
the first day of the month after the board of supervisors of the
county adopts, by majority vote, a resolution providing that this
section shall become applicable in the county.
   (b) Notwithstanding any other provisions of this chapter, the
current service pension or the current service pension combined with
the prior service pension is an additional pension for safety members
purchased by the contributions of the county or district sufficient
when added to the service retirement annuity to equal 3 percent of
the member's final compensation set forth opposite his or her age at
retirement, taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of current service
or years of current and prior service with which the member is
entitled to be credited at retirement.  In no event shall the total
retirement allowance exceed the limitation of the safety member's
final compensation as set forth in Section 31676.1, as it now reads
or may hereafter be amended to read.


  Age at
Retirement                              Fraction
41 .................................     .6258
41 1/4 .............................     .6350
41 1/2 .............................     .6442
41 3/4 .............................     .6533
42 .................................     .6625
42 1/4 .............................     .6720
42 1/2 .............................     .6814
42 3/4 .............................     .6909
43 .................................     .7004
43 1/4 .............................     .7102
43 1/2 .............................     .7200
43 3/4 .............................     .7299
44 .................................     .7397
44 1/4 .............................     .7499
44 1/2 .............................     .7601
44 3/4 .............................     .7703
45 .................................     .7805
45 1/4 .............................     .7910
45 1/2 .............................     .8016
45 3/4 .............................     .8121
46 .................................     .8226
46 1/4 .............................     .8339
46 1/2 .............................     .8452
46 3/4 .............................     .8586
47 .................................     .8678
47 1/4 .............................     .8780
47 1/2 .............................     .8882
47 3/4 .............................     .8983
48 .................................     .9085
48 1/4 .............................     .9194
48 1/2 .............................     .9304
48 3/4 .............................     .9413
49 .................................     .9522
49 1/4 .............................     .9641
49 1/2 .............................     .9761
49 3/4 .............................     .9880
50 and over ........................    1.0000

   (c) Contributions shall not be made by safety members having
credit for 30 years of continuous service.
  SEC. 3.  Section 31664.2 is added to the Government Code, to read:

   31664.2.  (a) This section may be made applicable in any county on
the first day of the month after the board of supervisors of the
county adopts, by majority vote, a resolution providing that this
section shall become applicable in the county.
   (b) Notwithstanding any other provisions of this chapter, the
current service pension or the current service pension combined with
the prior service pension is an additional pension for safety members
purchased by the contributions of the county or district sufficient
when added to the service retirement annuity to equal 3 percent of
the member's final compensation set forth opposite his or her age at
retirement, taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of current service
or years of current and prior service with which the member is
entitled to be credited at retirement.  In no event shall the total
retirement allowance exceed the limitation of the safety member's
final compensation as set forth in Section 31676.1, as it now reads
or may hereafter be amended to read.


  Age at
Retirement                              Fraction
41 .................................     .4777
41 1/4 .............................     .4848
41 1/2 .............................     .4918
41 3/4 .............................     .4987
42 .................................     .5058
42 1/4 .............................     .5130
42 1/2 .............................     .5202
42 3/4 .............................     .5274
43 .................................     .5347
43 1/4 .............................     .5422
43 1/2 .............................     .5497
43 3/4 .............................     .5572
44 .................................     .5647
44 1/4 .............................     .5725
44 1/2 .............................     .5803
44 3/4 .............................     .5881
45 .................................     .5958
45 1/4 .............................     .6039
45 1/2 .............................     .6120
45 3/4 .............................     .6200
46 .................................     .6280
46 1/4 .............................     .6366
46 1/2 .............................     .6452
46 3/4 .............................     .6555
47 .................................     .6625
47 1/4 .............................     .6703
47 1/2 .............................     .6781
47 3/4 .............................     .6858
48 .................................     .6936
48 1/4 .............................     .7019
48 1/2 .............................     .7103
48 3/4 .............................     .7186
49 .................................     .7269
49 1/4 .............................     .7360
49 1/2 .............................     .7452
49 3/4 .............................     .7543
50 .................................     .7634
50 1/4 .............................     .7733
50 1/2 .............................     .7832
50 3/4 .............................     .7930
51 .................................     .8028
51 1/4 .............................     .8135
51 1/2 .............................     .8242
51 3/4 .............................     .8349
52 .................................     .8457
52 1/4 .............................     .8574
52 1/2 .............................     .8691
52 3/4 .............................     .8808
53 .................................     .8926
53 1/4 .............................     .9053
53 1/2 .............................     .9182
53 3/4 .............................     .9310
54 .................................     .9418
54 1/4 .............................     .9579
54 1/2 .............................     .9718
54 3/4 .............................     .9860
55 and over ........................    1.0000

   (c)  Contributions shall not be made by safety members having
credit for 30 years of continuous service.
  SEC. 4.  Section 31681.55 is added to the Government Code, to read:

   31681.55.  Effective the first day of the first month after
adoption of this section by the board of supervisors, allowance paid
with respect to any member of this system who retired or died prior
to January 1, 2001, shall be increased by the percentage set forth
opposite the year of retirement or death in the following schedule:



    Period during which retirement
    or death occurred:                       Percentage:
    January 1, 1998, or later                    0.0%
    12 months ending Dec. 31, 1997               1.0%
    24 months ending Dec. 31, 1996               2.0%
    60 months ending Dec. 31, 1994               3.0%
    60 months ending Dec. 31, 1989               4.0%
    120 months ending Dec. 31, 1984              5.0%
    12 months ending Dec. 31, 1974,
    or earlier                                   6.0%

   The percentage shall be applied to the allowance payable on the
effective date, and the allowance as so increased shall be paid for
time on and after that date and shall be subject to annual
cost-of-living adjustments.
   (b) This section shall not be operative in any county until such
time as the board of supervisors shall, by resolution adopted by
majority vote, make the provisions of this section applicable in that
county.
